Updated: Jul 16
Hosted Vs Premise Based Systems,
This article will discuss the differences between hosted and on-premise phone systems. In short, hosted phone systems are more scalable, and secure, and can be configured for failover. Meanwhile, on-premise systems require IT personnel to maintain them on a regular basis. This article will also discuss the advantages of on-premise phone systems.
On-premise phone systems are more scalable
Both on-premise and hosted phone systems are scalable. The advantage of on-premise systems is that you can add more phones and extensions if necessary. While most PBX systems have a fixed number of extensions or phones, a hosted system is scalable by adding expansion boxes to add more capacity. Because hosted phone systems are based on network infrastructure, they are usually more scalable than on-premise systems.
While hosted phone systems are more scalable, on-premise systems can be expensive. If you're looking to expand your business, you may be better off with an on-premise phone system. It's cheaper and offers more flexibility. In addition, you'll only have to pay for the connections needed to run your system.
Premise-based phone systems require the installation and management of hardware and software. You'll need to buy a router and gateway to use the system. Then you'll need to maintain the system. If your system breaks down, you'll have to replace it, which costs money.
On-premise phone systems are located in a fixed location
There are several key differences between a premise-based phone system and a cloud-based one. The former is located at the owner's facility and is therefore managed on site, while the latter is managed by a third-party provider. The main benefit of a premise-based phone system is that it can be switched to a different VoIP provider much more easily and quickly. Conversely, with a hosted phone system, the provider's location is usually hundreds of miles away, which may cause significant latency and require a high-speed internet connection.
On-premise phone systems require a significant upfront investment, whereas a hosted solution requires only a small monthly fee. The upfront costs associated with a premise-based system include hardware purchases such as a switch, a server, and phones. Additional costs may also arise when the number of users grows. A hosted business phone system, on the other hand, can easily be expanded.
On-premise phone systems are a popular choice for large businesses. However, they are costly and require a substantial amount of setup time. Besides, they also require licensing and additional hardware. Another disadvantage of on-premise phone systems is that they are not as flexible as cloud-based phone systems.
On-premise phone systems are more secure
Choosing a Hosted Vs Premise Based phone system should be based on your business's needs and budget. On-premise phone systems typically have a higher capital cost for your business, but they are less costly in recurring expenses. On-premise phone systems often have leasing programs that let you own the equipment yourself. In addition, on-premise phone systems have optional network connections, application servers, and other features. They also work well with your current business phone system.
On-premise phone systems give you total control over your network and data server, which is usually located inside your office. While your IT team might have a better understanding of the details of your network, you will also be responsible for keeping your servers updated and secure. On-premise phone systems also require a significant amount of maintenance and data backup. Furthermore, you'll need a team to restore service if disaster strikes.
A hosted phone system operates much like an on-premise phone system but utilizes your existing internet connection. It offers flexibility and freedom, and it can be more affordable than its alternative. Unlike on-premise phone systems, cloud phone systems only require an internet connection, so there's no need to hire an in-house network administrator. Another advantage of hosted phone systems is that they are more scalable. With fewer wire lines, a hosted system is far more flexible than a premise-based phone system.